Trinity Industries, Inc. · NYSE:TRN
Trinity Industries — Investor Presentation (May 2014)
22 slides from Trinity Industries's investor presentation, May 5, 2014
Slide 1: Trinity Industries, Inc. May 2014
Trinity Industries, Inc. May 2014 Exhibit 99.1
Slide 2: Forward Looking Statements
2 Forward Looking Statements This presentation contains “forward looking statements” as defined by the Private Securities Litigation Reform Act of 1995 and includes statements as to expectations, beliefs and future financial performance, or assumptions underlying or concerning matters herein. These
Slide 3: Agenda
3 Agenda I. Overview II. Key Investment Considerations III. Strategy and Vision IV. Financial Highlights V. Appendix
Slide 4: Trinity Industries, Inc. Overview
I. Trinity Industries, Inc. Overview 4 Trinity Industries, Inc. is a diversified industrial company that owns a variety of market-leading businesses providing products and services to the energy, transportation, chemical, and construction sectors Trinity operates through five business segments:
Slide 5: Key Investment Considerations
II. Key Investment Considerations 5 Leading Market Positions Diversified Portfolio of Businesses Flexible and Cost-Effective Manufacturing Seasoned Performers Enrichment Value Focused
Slide 6: Leading Market Positions
Leading Market Positions 6 Rail Group Leading manufacturer of railcars in North America Leading manufacturer of railcar axles in North America Leading manufacturer of railcar coupling devices in North America Railcar Leasing and Management Services Group Leading provider of railcar leasing a
Slide 7: Diversified Portfolio of Businesses
Diversified Portfolio of Businesses 7 PRESENT (LTM 03/14) MEASUREABLE PROGRESS OVER LAST 10 YEARS Total Revenues = $4.9 B Our diversified portfolio of businesses generated a higher level of EPS on a similar level of deliveries during both the last rail industry downturn and delivery peak (1) Operati
Slide 8: Flexible and Cost-Effective Manufacturing
Flexible and Cost-Effective Manufacturing 8 Flexibility Cost-Effective Trinity's manufacturing flexibility across product and business segments enhances our ability to opportunistically respond to changes in market demand Trinity’s manufacturing scale, vertical integration, and presence in the South
Slide 9: Enrichment Value Focused
Enrichment Value Focused 9 E x te rn a l R e p o rti n g G ro u p s O p e ra tio n a l Foc u s A re a s Rail Leasing Construction Energy Inland Barge Customer Sharing Internal Component Sourcing Shared Best Manufacturing Practices Facility Optimization Centralized Cost Savings Trinity focuses on col
Slide 10: Seasoned Performer Across Various Market Conditions
10 Seasoned Performer Across Various Market Conditions Trinity is uniquely positioned for growth across various economic conditions Seasoned management team knows how to assess the market, proactively plan for cycles and address changes in economic conditions Manufacturing flexibility is a cor
Slide 11: Strategy and Vision: Operational
III. Strategy and Vision: Operational 11 Strategically Grow the Lease Fleet Maximize Manufacturing Efficiency Selectively Build our Backlogs Diversify Through Organic Growth Acquire Complementary Product Portfolios Be a premier, diversified industrial company that generates superior earnings and ret
Slide 12: Strategy and Vision: Financial
Liquidity (at 03/31/14): ~ $1,488 mm Strategy and Vision: Financial 12 Maintain a conservative and liquid balance sheet to be attractively positioned to capitalize on opportunities Working Capital Capital Expenditures Acquisitions Shareholder Distributions Corporate Debt(1) - Convertible Subordinate
Slide 13: Financial Highlights: Trinity's Earnings Summary
13 IV. Financial Highlights Trinity’s Earnings Summary FY 2008 – LTM 03/14(3) LTM as of March 31, 2014(1): Revenues increased 27% from $3.8 billion to $4.9 billion Operating profit increased 95% from $437 million to $854 million(2) EBITDA increased 51% from $813 million to $1,224 million Ear
Slide 14: Guidance and Outlook (As of April 30, 2014)
Guidance and Outlook (As of April 30, 2014) 14 Rail Group Revenues ~ $3.4 – 3.6 billion in FY 2014 OP Margin ~ 17.5% – 19% in FY 2014 Shipments ~ 27,500 – 29,000 in FY 2014 Leasing Group Revenues from Operations ~ $595– 625mm in FY 2014 OP from Operations ~ $260 - 280mm in FY 2014 Revenue Eliminatio
Slide 15: Appendix: Operating Business Summaries
Appendix: Operating Business Summaries
Slide 16: Rail Group
16 Trinity delivered 25,995 railcars representing 47% of industry shipments during LTM 03/31/14 Trinity received orders for 27,360 railcars representing 41% of the industry total during LTM 03/31/14 Trinity’s order backlog was a record 42,630 railcars representing 52% of industry backlog as of
Slide 17: Railcar Leasing & Management Services Group
$272 $314 $329 $461 $493 $529 $587 $603 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% $0 $100 $200 $300 $400 $500 $600 $700 2007 2008 2009 2010 2011 2012 2013 LTM 03/14 TILC Revenue Operations Margin PBT Margin 17 Railcar Leasing & Management Services Group Leading provider of comprehensive railcar leasing
Slide 18: Inland Barge Group
18 Revenues down 13% in LTM 03/14 vs. LTM 03/13 as a result of fewer deliveries of hopper barges Profitability continues to be strong compared to historical averages for this business - Operating Profit margin was 17% during LTM 03/14 Solid order backlog of $508mm at 03/31/14 due to strong tan
Slide 19: Construction Products Group
19 Revenues and Operating Profit increased 16% and 61% respectively LTM 03/14 vs. LTM 03/13 as a result of acquisition related volumes in our Aggregates business, partially offset by lower volumes in the highway products business Portfolio repositioning activities since 2011 include the completi
Slide 20: Energy Equipment Group
20 Structural Wind Towers: Revenues of $257 million in LTM 03/31/14 Backlog of $477 million as of 03/31/14 Plants are strategically located along the central corridor where the majority of wind farms are installed Able to shift manufacturing capacity to meet market demand for wind towers due
Slide 21: Reconciliation of EBITDA
2008 2009 2010 2011 2012 2013 LTM 03/14 Income (loss) from continuing operations $266.8 ($140.8) $69.4 $146.8 $251.9 $386.1 $547.2 Add: Interest expense 109.4 123.1 182.1 185.3 194.7 187.3 184.4 Provision/(Benefit) for income taxes 163.5 (11.5) 37.3 92.2 134.0 204.4 275.7 Depreciation & amortization
Slide 22: Reconciliation of PBT Margin – Railcar Leasing and Management Services Group
Reconciliation of PBT Margin – Railcar Leasing and Management Services Group 22 (in millions except for PBT Margin) 2007 2008 2009 2010 2011 2012 2013 LTM 03/14 From Leasing Operations: Revenue 272$ 314$ 329$ 461$ 493$ 529$ 587$ 603$ Operating Profit 112 124 129 200 225 243 267 276 Less: Interest Ex
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